Startup Professionals Musings

MARCH 12, 2023

Too many entrepreneurs tell me they are looking for an investor, and can’t differentiate between venture capital (VC) investors versus accredited angel investors. The amounts from angels start as low as $25K, while minimum venture capital amounts usually start in the $2M range. In fact, the reality is quite the opposite.

Angel Investor 246

Angel Investor IRR Venture Capital Valuation 246

Gust

NOVEMBER 15, 2011

The Risk Factor Summation Method the fifth methodology for estimating the pre-money valuation of pre-revenue companies we have described in recent posts. Readers may have noted that both the Scorecard Method and the Dave Berkus Method considered a narrow set of important criteria for investment in arriving at a pre-money valuation.

Valuation 102

Valuation Pre-Money Valuation Ohio Early Stage 102

Startup Professionals Musings

JUNE 26, 2013

It is no secret that the world of venture capital (VCs) was turned upside down by the recent Recession, and many other changes in the marketplace. I would conclude that the genesis of this trend comes from several forces, including the following: Less investment capital available. Marty Zwilling.

Angel Investor 231

Angel Investor Entrepreneur Early Stage Silicon Valley 231

Both Sides of the Table

JUNE 28, 2018

How could Bird really be worth the reported $2 billion valuation that I read about in this press? While I promised not to comment on the exact valuation you can assume that it is very large and perhaps the fastest rise from zero to what some have called a “unicorn” valuation. Forget the valuation?—?I

San Francisco 256

San Francisco Valuation Technical Review Los Angeles 256

Startup Professionals Musings

NOVEMBER 25, 2020

With the advent and growth of crowdfunding over the past few years, many entrepreneurs have predicted the demise of those demanding angel investment groups and venture capital organizations. Lack of checks and balances on startup valuations. These groups are now largely run by volunteers at no cost to entrepreneurs.

Equity 411

Equity Angel Groups Accredited Investor Due Diligence 411

ReadWriteStart

JUNE 1, 2020

In very few specific cases, depending on the nature of the business, the business model might demand a considerable gestation period or extensive research and development. The bridge or exit stage is generally of very large transactions and for companies with substantial valuation. Equity investors. Debt investors.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

Startup Professionals Musings

AUGUST 6, 2023

With the advent and growth of crowdfunding over the past few years, many entrepreneurs have predicted the demise of angel investment groups and venture capital organizations. Lack of checks and balances on startup valuations. In fact, the latest figures show that crowdfunding globally is expected to grow from USD 1.41

Angel Groups 201

Angel Groups Accredited Investor Due Diligence Equity 201

David Teten

JANUARY 19, 2021

From RBI, Flexible VCs borrow the ability to reap meaningful returns without demanding founders build for an exit. Every Flexible VC structure allows founders to access immediate risk capital while preserving exit, growth trajectory, and ownership optionality. . We detail below the major categories of VC: VENTURE CAPITAL TYPOLOGY.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Startup Professionals Musings

JUNE 5, 2021

Supply and demand ignored. We all believe that supply and demand meet to create stable prices (reflexive). But sometimes higher prices create higher demand, causing a boom. In startups, a great success like Google causes busts by stimulating more supply, without regard to demand. High valuation, low profit.

Demand 362

Demand Government Venture Capital Valuation 362

Startup Professionals Musings

APRIL 17, 2023

Different types of investors tend to specialize in capitalizing on businesses at different stages. Venture capital firms look for the most mature companies they can find, Angel investors typically deal a tier lower, while friends and family are most likely to help you get started. Congratulations!

Angel Investor 313

Angel Investor Intellectual Property Investment Bankers Private Equity 313

Startup Professionals Musings

JUNE 13, 2020

Too many entrepreneurs tell me they are looking for an investor, and can’t differentiate between venture capital (VC) investors versus accredited angel investors. The amounts from angels start as low as $25K, while minimum venture capital amounts usually start in the $2M range. In fact, the reality is quite the opposite.

Angel Investor 314

Angel Investor Entrepreneur IRR Valuation 314

David Teten

DECEMBER 3, 2019

Private equity and venture capital investors are copying our sisters in the hedge fund world: we’re trying to automate more of our job. . 3) Raise capital. Fund/SPV management services specifically are provided by Assure Services and Proteus Capital. ff Venture Capital hired two full-time engineers to build out Totem.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

VC Cafe

JANUARY 2, 2023

As Vintage Venture Partners put it in a recent presentation shared in Tel Aviv , 2022 started off well but fell of a cliff in the second half (the slides were shared on Twitter by Amitai Ziv from Tech 12 ). Israeli venture funding dropped 40% compared to 2021, from $28.7 Lower valuations , especially in later stage.

Valuation 158

Valuation Down Round Venture Capital 158

thebarefootvc

JANUARY 27, 2014

Do I think we are in a valuation bubble? I think that later stage valuations are frothy (for reasons I explain below) while earlier stage valuations are starting to stabilize from previous highs (with the exception of the superstar serial entrepreneur) - turns out scaling in a sea of competition (both startup and entrenched) is not so easy.

Technical Review 63

Technical Review Valuation Venture Capital Investment Bankers 63

The Equity Kicker

DECEMBER 6, 2013

Venturebeat reported yesterday that US startup valuations have reached ten year highs. You can see from the charts above that median valuations have been increasing at all stages from seed through to Series D or later. Venture Capital'

Valuation 162

Valuation Venture Capital Startup Europe 162

Both Sides of the Table

OCTOBER 21, 2009

On the third Wednesday of every month I co-chair a meeting called the SoCal VCA (venture capital alliance), which represents participants from all of the top venture capital firms in Southern California as well as prominent members of the Tech Coast Angels (TCA). What have been your experiences in the past 6 months?

Technical Review 241

Technical Review IPO Southern California Venture Capital 241

The Startup Magazine

DECEMBER 14, 2021

This mind-boggling number implies strong demand growth and demonstrates how engaged the userbase is. ” This past September, the company raised $130 million in their Series D round , which skyrocketed Lightricks’s valuation to $1.8 This round was led by the prestigious global funds of Insight Partners and Hanaco Venture Capital.

Venture Capital 167

Venture Capital Bootstrapping Valuation Social Media 167

Startup Professionals Musings

NOVEMBER 13, 2021

Until I read the classic book “ The Business of Sharing, ” by Alex Stephany, who founded JustPark (current valuation estimated at £80M), I too had no idea of the scope of opportunities, and the 300 or more players already out there. Community means more than supply and demand. Assets need to move in a community of engaged users.

Cuba 316

Cuba Venture Capital Community Valuation 316

Startup Professionals Musings

JULY 22, 2020

Different types of investors tend to specialize in capitalizing on businesses at different stages. Venture capital firms look for the most mature companies they can find, Angel investors typically deal a tier lower, while friends and family are most likely to help you get started. Congratulations!

Angel Investor 370

Angel Investor Intellectual Property Investment Bankers Private Equity 370

Both Sides of the Table

JUNE 5, 2011

2: As expected at least one person accused me of writing this post because I want to see lower valuations. As the risks below get eliminated the higher the valuation investors are prepared to pay. So rounds tend to be “range bound&# where the top end of the valuation spectrum often being done in boom markets (i.e.

Pre-Money Valuation 336

Pre-Money Valuation Valuation Silicon Valley Stock 336

VC Cafe

JANUARY 24, 2021

Companies like iHeartMedia, SiriusXM, and Spotify are investing in and leading the evolution of audio, focused on music streaming (on-demand and lean-back modalities), podcasting and content production. Trillion Hours, 218 Billion Downloads – demand for new apps and games still grows globally, up 7% YoY.

Technical Review 207

Technical Review Audio Forecast Social Media 207

YoungUpstarts

NOVEMBER 20, 2019

VCs want to see that there’s a demand for your product and that you’re able to meet that demand. Have a reasonable attitude about your early-stage valuation, and don’t get too hung up on it. Prepare to prove your worth. That number is not a real reflection of how much your company is worth.

Technical Review 140

Technical Review Due Diligence Early Stage Differentiation 140

Tim Keane

JANUARY 12, 2010

Term-sheets and Valuations: Thinking about Negotiations.   I’ve sat down with entrepreneurs and a copy of a term sheet guide I like [ “Term Sheets & Valuations - A Line by Line Look at the Intricacies of Venture Capital Term Sheets & Valuations ” by Alex Wilmerding, Aspatore Press.]

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Both Sides of the Table

OCTOBER 1, 2009

It is also a result of pent-up demand. This has a tangible impact on the valuation of start-ups and the pace of investment. My advice : if you’re raising a $750,000 round and you have demand for $1.2 Tags: Pitching VCs Start-up Advice VC Industry startup technology vc venture capital. million – take it.

Technical Review 269

Technical Review Stock Hawaii Early Stage 269

Startup Professionals Musings

SEPTEMBER 26, 2015

Perhaps they're way off in their valuation (usually far too high), or paralyzed by fear at seeing the other terms, because they have no idea what's normal, and what's worth a fight to the death (their startup's). In very early startups, which have no valuation, the term sheet may specify a convertible note.

Term Sheet 120

Term Sheet Demand Preferred Stock Liquidation Preference 120

Steve Blank

DECEMBER 3, 2020

I think it would be a mistake to subordinate our security issues, particularly those with China to the demands of cooperating with him on environmental issues. It’s just you have so many demands on your time and the demands of reelection. I think Biden already announced his intent to rejoin the Paris Climate Agreement.

Technical Review 235

Technical Review Technology China Taiwan 235

Startup Professionals Musings

AUGUST 2, 2014

Too many entrepreneurs tell me they are looking for an investor, and can’t differentiate between venture capital (VC) investors versus accredited Angel investors. The amounts from Angels start as low as $25K, while minimum venture capital amounts usually start in the $2M range. In fact, the reality is quite the opposite.

Angel Investor 266

Angel Investor Entrepreneur Venture Capital IRR 266

ReadWriteStart

JANUARY 29, 2023

According to Jungle Ventures, Southeast Asia’s technology startups had a combined valuation of $340 billion in 2020. Venture capital (VC) investment is the primary funding source for regional startups. The pandemic has significantly increased the demand for access to digital services. billion in 2018.

Asia 171

Asia Indonesia Silicon Valley Malaysia 171

Both Sides of the Table

JANUARY 22, 2014

I’ve been involved with SaaS companies with VCs who don’t understand demand generation, lead qualification, sales coverage ratios, sales forecasting or frankly when deals should be inside sales vs. outside sales. And so is venture capital. There are times you just need help getting s**t done. Commitment.

Portfolio 364

Portfolio Chicago Sales Incubator 364

Both Sides of the Table

OCTOBER 12, 2014

All the confusion you hear from friends or read in the press is related to this nuance that early investors demand prorata rights and sometimes fight like hell to maintain them (Facebook problem) and sometimes prefer not to take them (overvalued company that they perceive isn’t doing as well as new investors coming in think).

Technical Review 336

Technical Review Later Stage Early Stage LP 336

Steve Blank

APRIL 1, 2020

If you were expecting angel or venture funding get on the phone to your investor(s). Others are cutting their valuations. The CFO should be on the phone to sources of additional capital. With more work from home happening, all of these services will see increased demand from companies.

South Korea 333

South Korea Salary Business Model China 333

Both Sides of the Table

SEPTEMBER 15, 2014

Venture Capital is a tricky industry. When the early teams: angels, lowercase capital & first round capital funded Uber they had no idea it would be one of the most revolutionary ideas of our time. I know – I was there when the first people debating funding it at less than a $5m valuation. Far from it.

Technical Review 362

Technical Review America Partner United States 362

Startup Professionals Musings

FEBRUARY 2, 2019

Until I read the classic book “ The Business of Sharing, ” by Alex Stephany, who founded JustPark (current valuation estimated at £33M), I too had no idea of the scope of opportunities, and the 350 or more players already out there. Community means more than supply and demand. Assets need to move in a community of engaged users.

Cuba 246

Cuba Venture Capital Community Valuation 246

The Next Web

SEPTEMBER 13, 2013

Many Asian entrepreneurs tell me that they want to raise funds from Silicon Valley firms because they perceive the valuations to be higher. The venture capital landscape in Asia is varied and complex, as most of the active firms on the continent are concentrated in just a few areas. This is driven both by supply and demand.

Asia 132

Asia Silicon Valley India Term Sheet 132

Hunter Walker

SEPTEMBER 2, 2022

Probably a correlation here with why there was more venture funding for golf tech than women’s fertility until very recently…. Look, socialists hate venture capital, and venture capitalists hate unions. We don’t aspire to be venture backed, to be a mark-up, or to chase the headline of a valuation.

Chicago 78

Chicago Venture Capital Miami Employee 78

abovethecrowd.com

JUNE 2, 2021

On the demand side, the IPO process is limited to a handful of institutional investors and also ignores the vast majority of retail investors. Investment banks simply do not match supply and demand. When I share this, reporters often ask me, “why is management so gullible to sit there and listen to a demand imbalance goal of 30x-50x?”.

IPO 82

IPO Customer Matching Silicon Valley 82

crowdSPRING Blog

MARCH 13, 2014

Guerilla tips for raising venture capital | VentureBeat – crowdspring.co/P6hM3O. Does A Billion-Dollar Valuation Buy Employee Happiness? My guess: poor results & low demand – crowdspring.co/1gY63vJ. It takes 3 years [before you know if your startup can be a real business] – crowdspring.co/1kK2ZJ8.

Social Media 96

Social Media Small Business Design Media 96